We are not listing paid outside of closing (POC) fees when we have a change of circumstance on Loan Estimates (LEs). If the borrower pays for a fee (e.g. appraisal fee) during the loan process, then the loan has a change of circumstance. Can the fee paid by the borrower upfront be listed as a borrower-paid fee on the revised Circumstance LE?

Answer:We do not recommend listing POC fees on a changed circumstance as a borrower-paid fee. The LE is simply intended to be a good faith estimate of all the charges the borrower will owe throughout the course of the loan transaction, and it does not have a spot for POC amounts. Any charges paid prior to closing will simply be reflected on page 2 of the Closing Disclosure as Paid by Borrower Before Closing. For any revised LEs that are issued, the disclosed appraisal cost should simply be either what is owed by the customer, or was owed by the customer prior to them paying it, and the LE should not reflect any payments they may have already made. The Closing Disclosure will take care of that.